Two Cumberland County Men Jailed in State Tax Scheme

Date: 8/19/2004

RALEIGH – Two Cumberland County men were sentenced to active
prison terms Wednesday on felony tax charges filed by the North Carolina
Department of Revenue.

Frederic Anthony McMillian, 35, of Fayetteville pleaded guilty on
March 11, 2004 to 25 counts of aiding and assisting in the preparation
of fraudulent tax returns. His judgment was continued and he remained
in jail awaiting sentencing.

Wake County District Court Judge Robert D. Radar sentenced McMillian
to three, consecutive 10-month minimum, 12-month maximum prison terms.
One sentence was suspended and McMillian was ordered to complete two
years of supervised probation after completing his active sentence.
He was given credit for the 181 days he has already served in the
Wake County Jail.

An investigation by the Department of Revenue’s Criminal Investigations
Division found that McMillian provided several individuals with fictitious
wage and tax statements that were used to prepare fraudulent state
income tax returns. The W-2’s deceived the state and caused
the Department of Revenue to issue larger tax refunds to the individuals
than they were lawfully entitled to receive.

In a related case, Virgil Junior Ray, 36, of Eastover pleaded guilty
on Aug. 18, 2004 to one count of attempting to obtain property by
false pretenses. Ray filed a fraudulent return for 2002 using a fictitious
wage and tax statement.